But federal prosecutors said the yacht was really purchased for Mr. Blossman's own use. When it was sold for $130,000 two years, the banker pocketed part of the profits.

Mr. Blossman, who was formerly CEO of the Lacombe bank that his family owned, pleaded not guilty in May to a fraud charge tied to the yacht deal and to a charge that he lied about funneling illegal contributions to Gov. Bobby Jindal's 2007 campaign. But this week, he pleaded guilty to both counts.

He'll be sentenced for those crimes in November and could get as much as 30 years for each count, as well as a $1 million fine, according to the Justice Department.

That's stiff punishment, but bank fraud is a serious crime. Mr. Blossman engaged in fraud to enrich himself, first with a yacht worth $200,000 and then with the proceeds from its sale. His 2003 transaction was described in court documents as a "scheme and artifice to defraud.''

As for his illegal political contributions, Mr. Blossman gave each of the 11 members who served on the banks' board of directors $5,000 bonuses. Board minutes claim the money was a reward for "continued support and hard work.'' But the money ended up being sent to Gov. Bobby Jindal's campaign -- a $5,000 check in the name of each director, a total of $55,000.

Court documents said that Mr. Blossman "well knew the 'bonus' was to funnel illegal political contributions and was not a bonus.''

Mr. Blossman was in trouble before he was charged by federal prosecutors. In early 2011, the Federal Deposit Insurance Corp. fined him $75,000 for recklessly disregarding regulations. The FDIC also banned him from participating in the affairs of any other bank because he "violated laws and regulations, engaged or participated in unsafe or unsound banking practices, or committed or engaged in acts, omissions or practices which constitute breaches of his fiduciary duties to the bank.''

The bank failed late last year and was taken over by the FDIC, which sold it at auction to First NBC.

Mr. Blossman broke the law, and he also abused the trust placed in him by those who banked at Central Progressive. He should face heavy consequences for those acts.